By Tony Obiechina, Abuja
The Nigerian Economic Summit Group (NESG) has commended the Federal government for commencing the implementation of the Medium-term National Development Plan (2021-2025), and deliberations on the domestic and external performance of the Nigerian economy in the first half of 2022.
This commendation is contained in a communique issued by the Board of Directors of the NESG after its meeting, and was made available in Abuja on Sunday.
In the communique, the NESG also “acknowledges and commends the efforts of President Muhammadu Buhari and the National Assembly in passing into law the Electoral Act, 2022, which is already proving to be a veritable tool for improving our electoral process. These are good legacies, but there is much more to be done”.
The communique which was signed by the NESG Chairman, Mr Asue Ighodalo, said the group after reviewing the economic and security situations in the country, urged the Federal Government to urgently “devise a pragmatic national security strategy that unconditionally guarantees the safety of lives and properties within the country”.
Other recommendations and observations made by the group, according to the communique, include, a decisive action to tackle the Government’s revenue challenges which cannot be divorced from leakages through the large-scale crude oil theft; difficult operating environment for businesses, and lack of innovation in tax collection/administration, among others, that have resulted in low accretion to the nation’s revenue base.
The communique reads, “We strongly believe these leakages have continued unabated because of the absence of sanctions and ineffective tax systems, We must return to the path of debt sustainability in the face of dwindling revenues not to create a debt burden for future Governments and, indeed, future generations.
“We must prioritise our expenditure, limit our spending to items we can sustain, and eliminate wastage and graft in Government. Governments, across all tiers, should lead by example through a drastic reduction in governance costs (such as running costs of the legislatures, the proliferation of government agencies, etc.) to reflect the austere times we face.
“We strongly advise greater transparency and simplicity in the management and communication of various subsidies (petroleum products, electricity, etc.) to establish their true costs that benefit the people.
“Urgent action is required to ensure food self-sufficiency by prioritising critical value chains and supporting private sector-led interventions to curtail this crisis and build a vibrant and sustainable food ecosystem in Nigeria based on consistent incentives and sanctions.
“The failure to address the current prevailing condition of multiple exchange rates continues to reduce the much-needed flow of foreign investments and official diaspora remittances.
“International investors, being savvy and rational, will not invest where there is a real risk to their ability to access and repatriate investment proceeds or when the functional currency is in sporadic depreciation.
“Multiple foreign exchange (FX) markets with significant price differentials create room for speculation, round-tripping, cronyism, and outright graft – with an attendant adverse effect on the economy. There is no better time to harmonise the FX rates than now.
“The proposed Medium Term Expenditure Framework of the Federal Government clearly indicates that the rising fuel subsidy costs continue to exceed unsustainable levels. According to reports from the Federal Ministry of Finance, Budget and National Planning, it is clear that the current fuel subsidy regime’s debilitating impact on our fiscal fragility cannot be overstated.
“We urge the Federal Government to explore a systematic subsidy removal programme that cushions the impact on our most vulnerable population through a well-coordinated and effectively transmitted social protection regime”.
